The total transaction value was approximately $34 million, including $4 million for working capital and other previously agreed adjustments with the payment to Globalluxe due in the first quarter of 2014. In Hong Kong, Macau, and Taiwan, KATE SPADE will directly own and operate the related businesses previously operated by Globalluxe.

In Singapore, Malaysia, and Indonesia, KATE SPADE announced that Valiram, its new partner in these countries will operate the kate spade new york and KATE SPADE SATURDAY businesses through distribution agreements and will fund approximately $1.5 million of the transaction value to acquire operating assets in certain regions. In Thailand, Kate Spade has entered into a direct distribution agreement with AT Luxury, Globalluxe's current sub-distributor.

For fiscal year 2013, Globalluxe's retail net sales for the kate spade new york brand were approximately $44 million, an increase of 25% from the prior fiscal year on a local currency basis, with pro forma operating margins in the mid-teens.

Globalluxe and its distribution partners operated six stores and one concession in Hong Kong, one concession in Taiwan, one store in Macau, two stores and one concession in Singapore, two stores in Malaysia, three stores and one concession in Indonesia, and two stores and six concessions in Thailand.

Prior to the Southeast Asia buyout, Kate Spade maintained wholesale distribution to Globalluxe. Following the Southeast Asia buyout, Kate Spade will maintain wholesale distribution to Valiram and the distributor in Thailand and recognize direct-to-consumer sales in Hong Kong, Macau and Taiwan. We expect that the profit from the now fully owned retail operations that include direct-to-consumer distribution will be incremental to the wholesale profits generated in 2013.

The expected incremental sales and profits resulting from these transactions are reflected in the sales and adjusted EBITDA guidance previously provided by Fifth & Pacific Companies, Inc.

Pursuant to this acquisition and the KATE SPADE joint venture in China, Kate Spade established an Asian regional headquarters in Hong Kong and has recruited local talent to manage the operations purchased from Globalluxe.

The Hong Kong regional headquarters also helps manage other brand operations and partnerships in the region including the joint venture in China and the newly formed distribution arrangements for Singapore, Malaysia, Thailand and Indonesia.